Idaho Banking Company Forms Idaho Bancorp and Announces Stock Split

Market Wire, December, 2004

Idaho Banking Company (OTC BB: IBCB) today announced the completion of the formation of Idaho Bancorp, a new bank holding company that owns 100% of the stock of Idaho Banking Company.

On December 7, 2004, shareholders of Idaho Banking Company approved the exchange of stock whereby each share of Idaho Banking Company stock was exchanged for one share of Idaho Bancorp stock, and Idaho Banking Company became a wholly owned subsidiary of Idaho Bancorp.

Mike Johnston, President and CEO, expressed his pleasure with the overwhelming support of shareholders for the creation of Idaho Bancorp. At the special meeting of shareholders held yesterday, 70.4% of the outstanding shares were voted and well over 99% favored formation of the holding company. The corporate restructure provides the Bank greater options in augmenting its capital structure and enables the uninterrupted growth in earning assets that the Bank enjoyed in 2004.

Shareholders also approved the 2004 Stock Incentive Plan that allows the Bank to continue to attract employees and grant incentives that align their financial interests with the interests of shareholders.

The common stock of Idaho Bancorp will be listed on Nasdaq's OTC Bulletin Board, under a new symbol IDBC on Thursday December 9, 2004.

Also on December 7, 2004, the Board of Directors of the newly formed Idaho Bancorp declared a 2-for-1 stock split, in the form of a 100% stock dividend, to shareholders of record on December 14, 2004. Each shareholder will receive on December 28, 2004, one additional share of stock for each share they own. Mike Johnston said, "The stock split recognizes and rewards the patience of our loyal shareholders, many of whom were original investors in the Bank since it was formed over eight years ago."

Idaho Banking Company, a state-chartered commercial bank and member of the Federal Reserve, was organized in 1996. The Bank operates four branch offices and one mortgage office in Ada County.

Contacts: Michael K. Johnston President and CEO 208-472-4702 Mary E. Brimson SVP Shareholder Relations 208-472-4705 Don D. Madsen EVP and CFO 208-947-1880